Question

For _____ to be levied on a product, it must be shown that prices are lower in the importing country than in the exporting country and that producers in the importing country are being directly harmed by the dumping of the product.

Answer 1

Anti-dumping laws are designed to protect domestic industries from imports sold below the cost of production by imposing tariffs, which help to level the playing field. These regulations are overseen by the WTO and are countercyclical, with more cases during economic downturns.

Step-by-step explanation:

For anti-dumping laws to be levied on a product, it must be shown that prices are lower in the importing country than in the exporting country and that producers in the importing country are being directly harmed by the dumping of the product.

Anti-dumping laws are trade regulations that prevent predatory pricing practices by imposing tariffs on imports sold below the cost of production. The objective is to adjust the price of these imports to better reflect their actual cost of production.

Nations can file a complaint with the World Trade Organization (WTO) if they believe they are victims of dumping. In periods such as recessions, anti-dumping cases tend to rise, which indicates that these laws are also countercyclical.